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Friday, June 15, 2012

Rumors about QE3 pushed SPX 14 points today and 17 points for the week. This is the second week in a row on the upside. SPX made a higher high on daily chart and cleared two important resistance levels, one around 1,325 and the other around 1,332 after making a clear higher high on weekly chart last week.
SPX is now just bellow SMA 50.

On hourly chart we have a bullish EMAs crossing and price above a rising SMA 120. SMA 120 was challenged twice last week but resisted heroically. This move on the upside is also confirmed by the daily DMI that has turned positive for the first time since May 2nd.

To be honest I am a bit surprised by this bullishness especially keeping in mind that over weekend Greece is having new elections and depending who is winning Greece will be out of the EU zone or not but as I learned the hard way is never clever to argue with the market. Market is always right!

Gold is also rising due to the same QE3 rumors but it remains, technically, pretty weak with a "death cross" still present and weekly DMI in red. However on intermediate time frame things are improving (daily DMI has turned positive).

Monday it will be an interesting trading day after the elections in Greece.